Sell TSMC, Buy ASML Calls Grow as China-Taiwan Risks Loom (1)

Intensifying Chinese pressure on Taiwan is prompting some equity investors to buck the trend and exit Taiwan Semiconductor Manufacturing Co.

Martin Currie’s Zehrid Osmani began winding down his TSMC position early last year and was fully divested by May. Shelton Capital Management’s Bruce Kahn started selling TSMC shares last October and eliminated his stake by January, while Sydney-based hedge fund Plato Investment Management said it’s “nervous” about the world’s largest foundry business.

At the same time, Martin Currie and Plato are among those finding an alternative in ASML Holding NV, a crucial TSMC supplier.

These are bold bets when ...